Crypto investor Mike Novogratz doesn’t expect the recent plunge in bitcoin to correct quickly, according to CNBC. Novogratz calls it a “liquidation event” that will see the market consolidating around the $36,000-$38,000 for some time.
Novogratz, Galaxy Digital founder, says the bitcoin slump feels like capitulation, with the price of the world’s cryptocurrency halving from April’s record high above $64,000.
Bitcoin’s rise last month was fueled by institutional adoption but has since lost grip, with banks such as JPMorgan saying its institutional investors are ditching it for gold.
Comments from Tesla’s CEO about environmental concerns of bitcoin have also been cited as behind the bitcoin fall.
Novogratz sees the $40,000 level as an attractive point of entry for buyers following the Wednesday’s plunge.
Bitcoin is currently gaining. BTCUSD is up 8.58%
